Nvidia Corp., the world’s largest developer of graphics processing units (GPUs), may be interested in acquisition of Via Technologies, a minor developer of x86 central processing units and core-logic sets, Taiwan-based press has reported. Given that Nvidia already has chipset business unit, the only product family in which Nvidia may be interested in is x86 chips by Via.

A news-story at DigiTimes web-site claims that Nvidia and Via had discussed three possible scenarios, including a strategic alliance, acquisition of Via’s processor division, or the acquisition of the entire company. The parties have not reached any agreement so far, but the negotiations may be re-opened up soon as financial situation for Via is not showing any signs of improvement, whereas Nvidia may truly need its own x86 platform to broaden market segments it could address.

Hard to imagine how NVIDIA could compete in CPU markets, AMD is pulling itself back together just in time to get broadsided by Nehalem... VIA's C7 is a power efficient platform, but not anything performance oriented.

Could give a nice improvement to future NVIDIA chipset designs though, and would give them a large slice of the low-end & non-US markets too.